Leidos Holdings (LDOS): Assessing Valuation After Strong 2024 Share Price Performance

Leidos Holdings (LDOS) has shown some interesting moves recently, especially in light of mild pullbacks following its recent run-up. Investors are keeping an eye on the action as shares consolidate gains from earlier this year.

See our latest analysis for Leidos Holdings.

Leidos Holdings’ share price has delivered a strong run-up through 2024, with momentum building noticeably following recent events. The company’s 32.9% year-to-date share price return signals renewed confidence, and its 5-year total shareholder return of nearly 125% highlights just how much long-term holders have benefited.

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With the stock’s rapid climb and modest discount to analyst price targets, investors are left to weigh whether Leidos Holdings still offers clear value or if the market has already priced in further upside from here.

Most Popular Narrative: 4.0% Undervalued

With the most followed narrative assigning Leidos Holdings a fair value of $198.50, the last close price of $190.47 leaves a modest gap to the upside. This narrative lays out the big trends powering further growth, and hints that the true drivers of returns might surprise some investors.

Leidos is positioned to benefit from increased, multi-year government funding focused on national security, defense modernization, border protection, and infrastructure, particularly through the One Big Beautiful Bill and related initiatives (e.g., FAA air traffic modernization, Golden Dome, maritime autonomy). These are expected to drive robust future revenue growth across core projects. Accelerating customer demand for digital modernization, AI-powered solutions, and autonomous systems in defense, healthcare, and intelligence plays to Leidos' strengths and is leading to higher-quality, higher-margin contracts that improve net margins. These capabilities command premium pricing and are in areas of secular growth.

Read the complete narrative.

Curious what’s behind that valuation gap? There’s a secret blend of government spend, digital innovation and projected earnings growth supporting this price. But the narrative’s assumptions might not be what you expect. Want to see exactly how future margins and revenues are forecast to play out, and what could tip the scales either way? Click through to uncover the full story.

Result: Fair Value of $198.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentration in key government contracts and shifting policy priorities remain potential catalysts. These factors could challenge the bullish narrative if conditions change unexpectedly.

Find out about the key risks to this Leidos Holdings narrative.

Build Your Own Leidos Holdings Narrative

If you have a different perspective or like to dig into the numbers yourself, you can piece together your own outlook in just a few minutes with Do it your way.

A great starting point for your Leidos Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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